Administrators KPMG today took the decision cease trading at ERDC Group, two weeks after it took over the running of the firm.
Blair Nimmo and Gary Fraser of KPMG were appointed joint administrators to ERDC Group on 18 November 2010.
ERDC Group is a well-known and established building contractor and was founded in 1955. It operated from its headquarters in Newbridge, Midlothian, Scotland.
The company operated three divisions comprising civil engineering, building and sports surfacing and had a well-established client base.
The administration is a result of the well publicised difficulties in the construction sector leading to a marked reduction in tender activity, a delay in some large projects and persistent difficulties in obtaining payment from customers.
The joint administrators understand that, at its peak in 2006, the company operated with around 200 employees and at the time of the joint administrators’ appointment employee numbers had reduced to 79.
It has ceased trading with 73 employees made redundant – six employees have been retained to assist the joint administrators in realising the company’s business and assets.
The joint administrators are in the process of assessing the company’s financial position before looking to maximise realisations for the benefit of all creditors.